By Deborah Levine
NEW YORK (MarketWatch) -- The euro will fall to $1.25 in the first quarter of next year, Morgan Stanley said Tuesday in lowering its forecast for the shared currency. Against the U.S. dollar, the euro EURUSD +0.19% will decline to $1.30 by the end of this year, from $1.3689 Tuesday. "We believe that economic, political, constitutional and monetary policy developments in Europe have now become more challenging for the euro, while international support is likely to decline," said analysts led by Hans Redeker, head of global FX strategy, in a note.
